We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where VSE Corporation (NASDAQ:VSEC) stands against other top growing aerospace and defense stocks for Trump’s Presidency.
There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.
As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.
The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.
Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.
To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers so far in 2025.
A close-up of a technician’s hands assembling parts for a commercial aircraft.
VSE Corporation (NASDAQ:VSEC)
VSE Corporation offers a range of aftermarket products and services globally. It operates in Fleet and Aviation segments. The company is up over 22% this year and judging by its recent earnings and industry outlook, it has a lot of room to grow.
Just over a week ago, VSEC reported an earnings beat by a massive 25%! On revenue of $299 million, the firm generated $52 million in free cash flow and $55 million in operating cash flow.
The aviation segment is expected to drive the major chunk of growth in 2025, set to generate an additional 35%-40% in revenue this year. The segment margins are expected to stay at 16% at the midpoint after accounting for the dilution impact of both Kellstrom and TCI acquisitions.
With air traffic returning to pre-covid levels and expected to continue growing, VSEC is set to soar thanks to its small size, financial strength, and an amazing track record for shareholders.
Overall, VSEC ranks 3rd on our list of top growing aerospace and defense stocks for Trump’s Presidency. While we acknowledge the potential of VSEC as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as VSEC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
